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Paperback
Published: 9th October 2015
ISBN: 9780730324249
Number Of Pages: 368
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Product Description
Question everything – and become a better investor in the process
Uncommon Sense takes readers on a four-century journey; from the dawn of public share ownership (in 1602) right up to today. But this is not simply a history book. It's a book for serious investors. Along the way it reveals the fascinating stories, the market characters and the important financial developments that have sculpted the thinking behind the value investor's craft. Blended throughout the narrative Kemp delivers an array of interesting anecdotes and rock solid logic regarding what works when investing in the stock market, what doesn't, and why.
Early in the 20th Century, Charles Dow remarked of Wall Street Operators that 'the more they actually know, the less confident they become.' Continuing in the tradition of that simple, elegant statement, this enlightening and entertaining book will have you thinking, acting and succeeding on your own in your investment endeavours.
Uncommon Sense will have you questioning and doubting much that's stated about stock market investing, then developing your own winning strategy based on reason and understanding.
About the Author
MICHAEL KEMP has worked as a corporate financier in Australia and overseas. He is the author of Creating Real Wealth.
About the author xi
Acknowledgements xiii
Part I: The limits of reason 1
0.9 Start thinking for yourself 3
1. The Pied Piper 9
2. The art of prediction 21
3. Why economics will never be a science 29
4. Forecasting the stock market 35
5. Does the stock market forecast the economy? 49
6. Can charts predict? 55
7. Market timing 65
8. Are computers the answer? 85
9. The efficient market hypothesis 97
10. Trader or investor? 107
11. Realistic expectations of returns 119
Part II: Stock screens and value metrics 125
12. Where to start: stock screen or triad of analysis? 127
13. Don’t accept the PE ratio at face value 135
14. Earnings growth isn’t always a good thing 145
15. Why do price to book ratios vary? 153
16. Selecting stocks by dividend yield 159
Part III: The genesis of stock valuation 167
17. It all started in Europe 169
18. Time to cross the Atlantic 185
19. The adoption of financial reporting 199
20. The modern era 209
Part IV: ‘Calculating’ value 215
21. Intrinsic value and market price 217
22. Earnings and earnings growth 231
23. The discount rate 245
24. The formulae 265
Part V: Beating the stock market 277
25. The Durant-Dort Carriage Company 279
26. Searching for numeric constants 283
27. The human constant 291
28. Coin-flipping orang-utans (my first trips to Omaha) 297
Appendix A: Why book value differs from economic value 309
Appendix B: Debt analysis 311
Glossary 317
References 321
Bibliography 331
Index 337
ISBN: 9780730324249
ISBN-10: 0730324249
Audience:
General
Format:
Paperback
Language:
English
Number Of Pages: 368
Published: 9th October 2015
Publisher: John Wiley & Sons Australia Ltd
Country of Publication: AU
Dimensions (cm): 23.0 x 15.2
x 1.8
Weight (kg): 0.53
Edition Number: 1
Earn 52 Qantas Points
on this Book
